SmartSave offers an attractive 6.01 percent interest rate on its One Year Fixed Rate Saver, earning an “excellent” rating from Moneyfactscompare.co.uk .
While this is a reduced rate of what was initially available, the account is still topping the table, offering the highest returns for those looking to put money away for up to one year.
Commenting on the deal, Rachel Springall, finance expert at Moneyfacts, said: “SmartSave has reduced the rate on its One Year Fixed Rate Saver this week, however, it keeps a prominent position in the market.
“Paying a rate of 6.01 percent, the deal sits above many of its peers and may entice savers looking for a guaranteed return over the next year if they have a minimum of £10,000 to invest.”
Ms Springall added: “Savers will find early access is not permitted, but they can make further additions for 14 days from account opening. On assessment, the account receives an Excellent Moneyfacts product rating.”
READ MORE: Savings accounts ‘set to fall’ – but this fixed rate may soon smash inflation
People can open an account with SmartSave, the savings provider owned by British Bank Chetwood Financial, with a minimum deposit of £10,000.
To provide an example of how much a pot this size can amass, SmartSave said by the end of the year’s term savers can rack up £601 worth of interest. On a balance of £20,000, people can amass a staggering £1,202 worth of interest.
Interest accrues daily and is applied to the balance at maturity, and all deposits up to £85,000 with SmartSave are protected by the Financial Services Compensation Scheme (FSCS).
However, withdrawals are not permitted unless in exceptional circumstances at the discretion of the savings provider, meaning savers should be comfortable with investing their cash for one year without touching it.
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While SmartSave is offering a particularly lucrative deal, competition doesn’t fall far behind. Charter Savings Bank is offering an Annual Equivalent Rate (AER) of six percent on a marginally smaller minimum deposit amount.
Savers can open a one-year fix with Charter Savings Bank with £5,000 and interest can be paid monthly or annually.
People must be aged 18 or over and can apply for the account online. Similar to SmartSave, withdrawals are not permitted until the term matures.
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For those with an even smaller deposit amount, QIB (UK) has a One Year Fixed Term Deposit, offered through Raisin UK, which also boasts an expected profit rate of six percent.
As an Islamic Bank that follows Shari’a principles, profit is earned rather than interest and this is paid annually.
To open this savings account, people must apply online through Raisin and need a minimum deposit of £1,000. Withdrawals are also not permitted until the end of the term.
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